The worst financial crisis in the auto industry is close to the end. The crisis is mainly in the retail automobile financing were the lenders were not confident about the repayment of credit. Of course, mortgage is the biggest reason for the crisis, which continued like a chain, with the chain touching every possible sector, industry and people inside the country and all across the world. The problem is, this chain has knotted itself wherever it went. This created more pressure for the White House & Federal Bank to untie the knot.

Good news are, credit markets are opened up, this improves lender’s liquidity. Another important reason is consumers are more educated, may be this crisis would have taught them about the importance of their credit score and limitations in buying any of assets.

“Giving credit becomes ease as the lenders have more money and many of them rely on asset – backed securities to fund their business of automobile finance. Though (sub-prime) mortgage collapsed the economy world over it helps in continuing the business. The federal government headed by Obama infused a huge sum of money from US treasury a couple of months (December) before has started its action now. This will help an average American in availing a loan easily.

Though economy helps in many ways for consumers, it is that common man’s responsibility to take care of his credit score and plan his cash flow if he expects an auto loan. Since the consumers now are more genuine in requesting a loan these days this issue can be sorted out if they consult with loan modification consultants.

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